Girl gives piggyback ride to squid holding a squid doll

Here's Hiné Mizushima's artwork created for the Supahcute Dream Team Show “Art Too Cute for Words”
May 12 – June 24, 2012 at Leanna Lin's Wonderland in Los Angeles. I believe its title is "Help Friends Play Games: I'll give you ride, you give Dolly a ride."

Wait, wait, this is some kind of Goofy Pluto situation. If we can tell that we’re looking at a squid doll attached to a girl doll, how do we know if it’s supposed to be holding a little real squid, or a little squid doll? If it’s holding a squid doll, will it be able to figure out that it is itself just a larger squid doll?